International Speedway ups buyback plan by $80 mln

BenFox

International Speedway Corp.'s (ISCA, ISCB) board unveiled plans to boost its buyback authorization by up to $80 million in Class A shares, as the racetrack operator cited confidence in its business strategy.

A number of corporations have expanded buyback programs in recent months after recent market volatility depressed prices. Repurchases can improve investors' confidence in a stock by shoring up its price and returning value to shareholders.

The repurchase plan will be added to the company's existing buyback program, which has $4.8 million remaining. The market value of its Class A shares is about $612 million.

"We remain confident in the strength of the motorsports industry, in particular NASCAR, and this new authorization signals confidence in our business strategies both today and looking forward," Chief Executive Lesa France Kennedy said.

The operator of racetracks across the U.S. has struggled with declining sales as cost-conscious consumers shy away from recreational outings. Still, the company's planned 2012 opening of Hollywood Casino at Kansas Speedway, in partnership with Penn National Gaming Inc.
PENN, -1.43%
could boost earnings in the years ahead.

The company on Thursday reported soaring third-quarter earnings, absent a year-earlier interest rate swap expense, though it missed expectations on weak attendance figures and lowered its full-year revenue guidance.

Shares closed Thursday at $22.33 and were inactive premarket. The stock is down 15% year to date.

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